EXHIBIT 99.1
Global Aircraft Solutions Concludes Equity Agreement With
Global Aircraft Leasing Partners
TUCSON, Ariz.--September 4, 2007--Global Aircraft Solutions, Inc. (GACF) an
integrated aviation company engaged in aircraft trading, aircraft parts sales,
and scheduled maintenance, repair and overhaul (MRO) services for commercial
airlines, charter airlines and aviation leasing companies, today announced that
it has successfully concluded an agreement to assume a 40% equity interest in
Global Aircraft Leasing Partners, LLC (GALP), effective October 1, 2007.
Notwithstanding the effective date of the agreement, the parties have agreed
that in return for marketing and technical support provided to GALP by GACF to
date, GACF will be entitled to a commission equal to 40% of the net profits
earned on all transactions entered into by GALP from the date of its inception
through October 1, 2007.
Under the terms of the agreement, in consideration for its 40% equity
participation in GALP, on October 1, 2007, GACF will make a one-time capital
contribution of $40,000. As further consideration, GACF will provide to GALP
ongoing technical support to facilitate GALP's commercial aircraft purchasing,
leasing and sales activities. The technical support provided to GALP by GACF
will include dedicated personnel from GACF's wholly owned subsidiaries, Hamilton
Aerospace Technologies (HAT) and World Jet, Inc., to inspect, evaluate, modify,
repair, maintain and provide logistical support for GALP's aircraft portfolio.
All technical services provided to GALP by HAT and World Jet will be billed at
company-standard rates. Under the terms of the agreement, GACF will not be
required to make any additional capital contributions in support of any future
aircraft acquisitions by GALP, and all debt assumed by GALP as a result of
aircraft acquisitions will be non-recourse with respect to GACF.
Contrary to the actions contemplated in the Company press release of March 13,
2007, Ian Herman has agreed to remain CEO of the Company and has agreed to
assign his 20% interest in GALP to GACF so as to give GACF its 40% interest in
GALP.
Ian Herman, CEO of Global Aircraft Solutions commented, "I have decided against
resigning as CEO of GACF, and becoming an equity partner in GALP, for two
principle reasons: First of all, given the challenges faced by the Company over
the last three quarters, I feel duty-bound to recommit my energies to returning
GACF to the strong financial performance it evidenced during the three years
preceding the fourth quarter of last year. Secondly, it has now become apparent
that GALP will play a much more important role than originally anticipated in
the growth and success of GACF. Accordingly, I have caused my interest in GALP
to be redirected to GACF."
John Sawyer, President of Global Aircraft Solutions commented, "I am very
pleased that Ian has agreed to remain CEO of the Company. His presence will
allow me to focus more of my time pursuing some very promising business
opportunities available through our relationship with GALP. The nature of the
aircraft sales and leasing business necessitates that we hold our cards close to
our chest. Nonetheless, I am confident that well before year-end, we will be in
a position to announce some aircraft transactions by GALP that will
significantly promote the growth and success of Global Aircraft Solutions."
About Global Aircraft Solutions -
Global Aircraft Solutions provides parts support and maintenance, repair and
overhaul (MRO) services for large passenger jet aircraft to scheduled and
charter airlines and aviation leasing companies. Hamilton Aerospace and World
Jet, both divisions of Global Aircraft Solutions, operate from facilities
comprising about 25 acres located at Tucson International Airport. These
facilities include hangars, workshops, warehouses, offices and other buildings.
Notable customers include Avolar Airlines, Jetran International, Goodrich
Corporation, AAR, the Mexican Presidential Fleet, Azteca Airlines, Pegasus
Aviation, Aloha Airlines, Alant Soyuz, United Breweries Holdings and Global
Aircraft Leasing Partners.
Global's website is located at www.globalaircraftsolutions.com. The Hamilton
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Aerospace website is located at www.hamaerotech.com.
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Except for the historical information presented, this press release contains
"forward-looking statements" made in reliance upon the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995 or regulations thereunder
including, but not limited to expected and estimated revenue and earnings.
Forward-looking statements are made based upon management's expectations and
belief concerning future developments and their potential effect upon the
Company. There can be no assurance that future developments will be in
accordance with management's expectations or that the effect of future
developments on the Company will be those anticipated by management.
The words "believes," "expects," "intends," "plans," "anticipates," "hopes,"
"likely," "will," and similar expressions identify such forward-looking
statements. Such forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause the actual results,
performance or achievements of the Company or its subsidiaries or industry
results, to differ materially from future results, performance or achievements
expressed or implied by such forward-looking statements. These risks include the
economic health of the airline industry, demand for Global Aircraft Solutions'
services, and competitive pricing pressures.
In addition, other risks are detailed in Global's Form 10-K for the year ended
December 31, 2006, Global's Form 10-Q for the quarter ended March 31, 2007, and
Global's 10-Q for the quarter ended June 30, 2007. These statements speak only
as of above date, and Global disclaims any intent or obligation to update them.
Contact:
Global Aircraft Solutions
Ian Herman, (520) 275-6059
iherman@hamaerotech.com
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or
Alliance Advisors, LLC
Alan Sheinwald, 914-669-0222
asheinwald@allianceadvisors.net
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